The EUR/USD pair descended last week despite elevated inflation levels in Europe that should have pushed the pair further to the upside. The reason for the decline was Portugal’s bailout plan and debt woes across the European continent where Finland is feared of blocking an aid to the third nation in European Union to ask for a bailout.
Furthermore, Moody’s Investors Services downgraded Ireland’s credit rating by two-levels, while preserving the outlook “Negative”, therefore, causing the pair to depreciate.
In addition, economists believe that the pair is extremely overbought areas, adding more pressure on the pair to depreciate.
On Monday; NO data to be released from major economies in the world, therefore volatility is expected throughout the day with bearishness prevailing.
Originally posted here
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